Lead image by Etta Bucholtz

The proposed hike of 8.7% saw opposition from customers around the metro in a public hearing

By Etta Bucholtz

On a chilly but sunny afternoon, a large group of Xcel Energy customers attended a hearing at the Roseville Public Library on a proposed 8.7% utilities rate hike.  

The room at the library was filled, even though at least one resident noted that the timing of the hearing did not accommodate the working public.

A representative from Xcel who was present explained how the increase was for improvements to their infrastructure and delivery of gas. The gas itself is a commodity and its cost is simply a “pass through.”

No public commenters favored the proposed hike, however, which would increase the average bill by $7.11 per month. This January, an interim rate hike of 6.8% was approved, resulting in a $5.48 per month increase.

One of the many speakers was Eric Lipman, a former judge who “joined the other side” and now works as a taxpayer advocate. He also founded Utility Reform Now, an advocacy group pushing for ratesetting reform.

Many others outlined cost issues, including a woman living on her husband’s social security with an increase of 2.8%. Another customer spoke of her small, 1,000 square foot house with a utility bill in excess of $500. 

One customer spoke of living in an older duplex home. She said she has done “all the sealing and insulating recommended and possible,” but her bill was still over $600. She wondered where compassion entered the conversation.

There was discussion and some consternation around the energy evaluations most receive outlining a customer’s home’s deficiencies when compared to “similar homes.”  A couple speakers posed questions about wasted effort and paper and wondered where those other homes were. The Xcel representative explained that all the homes’ bills were lumped together and then divided by the number of homes.

There were also discussions of Xcel and Northern States Power as monopolies, but admittedly “regulated monopolies.” Xcel stated that as a publicly traded company, they must satisfy investor needs for profit, a profit that someone later mentioned as $2.2 billion.

Some in the audience also pointed out an increased salary for Xcel’s CEO from $11 million annually to $16 million.

Questions arose about whether the revenue from the increase is spent here in Minnesota or in other states. The answer was about the travel of electrons and power like a big lake, but it seemed unsatisfactory. 

One customer rebutted Xcel’s comments on “how complex the documentation is.” He explained how a British General was once asked to provide a plan for building the navy for the future on only one side of a single sheet of paper. He was lenient in his request to Xcel— they could use 5 sheets.

Harder questions involved an increase in the number of customers in arrears, the answer being certainly more. Is there a program for customers who cannot pay their bills? Xcel explained their “payment plan” to which the speaker said it’s still the same bill, just longer to pay it.  Do you have anything else? Xcel hinted at some other options, but was not at liberty to discuss any details. 

Some customers observed Xcel’s past mistakes. One gentleman spoke of three propane plants that had been the subject of hearings five years ago which were still not fully repaired and restored to service.  Another commented on their new facility on McKnight Road in Maplewood, Minn. She noted that it appears that all of the buildings’ lights are on all the time.

Climate issues rounded out the discussions, with speakers pointing out that “increasing infrastructure for delivering a fossil fuel” does not seem consistent with Xcel’s commitment to its stated 2030 and 2050 goals. Under pressure, the Xcel representative stated that the company is not sure it can meet its net zero in 2050 goal for natural gas, repeating, “we have to provide service to customers.” 

Another resident suggested that Xcel could benefit from looking at some northern Wisconsin cooperatives that support electric furnaces with reduced rate storage heat options— options not available through Xcel to residents.

One final comment was about “stolen or leaking gas” and was it tracked.  Xcel said missing gas was tracked, but he did not think there was stolen gas. The speaker responded, “I saw a contractor hook up to the line before the meter to heat his concrete.”  

The public comment period for the rate increase ends on Tuesday, May 19 at 4:30 p.m.

Comments can be made online on the Minnesota Public Utilities Commission website or via email to consumer.puc@state.mn.us.

Comments can also be mailed to the Consumer Affairs Office, attention to MN PUC, 121 E 7th Place, Ste. 350, St. Paul, Minn. 55101. In your letter, include your name, address, telephone number and email address, the PUC docket number MPUC G-002/GR-25-356, your comments and any attachments.